Technology CommercializationTechnology CommercializationHewlett-Packard CompanyImaging and PrintingHP CorvallisTechnology Development ProcessesDevelopment ModelInnovate at the IntersectionsExample: Tech BrainstormTechnology Development Process (TDP)Project EvaluationPortfolio ReviewExample PortfolioExample PortfolioExample PortfolioExample Portfolio© 2006 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice Technology CommercializationTechnology CommercializationTim Weber, Ph.D.R&D DirectorTechnology Development Organization2 5 April 2007Technology Commercialization• Agenda− Business Objectives, Models, & Context− Development Strategy− Markets & Customers− Innovation Processes− Selection Process− Phase Gate Checkpoint Process− Technology Portfolio Management− Technology ExamplesIntent: Describe processes for managing technology innovation, development, and overall portfolio3 5 April 2007Hewlett-Packard Company• HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended January 31, 2007, HP revenue totaled $94.1 billion4 5 April 2007Imaging and Printing• $27 billion business over last 4 quarters• 420+ million printers sold (lifetime)− 320 million inkjet printers− 100 million LaserJet printers• More than 20 years of worldwide leadership in inkjet and laser printing• Continued #1 WW market share in inkjet and laser printers, printing supplies, large format, scanners and print servers • Leading imaging and printing intellectual property portfolio with more than 12,000 patents worldwide5 5 April 2007HP Corvallis• Technology Development− The engines that power the imaging and printing products• Development and high volume production of printheads• Product Development− Inkjet Printer Cartridges− PhotoKiosks− Specialty Print Systems• New Business Generation− Halo – Collaborative Studio− LightScribe6 5 April 2007Technology Development Processes• Printing− Deterministic, based on 20 years of experience− Innovation is mostly evolutionary• Emerging Business− Stochastic, based on markets of interest and novel capabilities− Innovation is mostly revolutionary • Need to balance investments in both7 5 April 2007Development Modelt - 10 years t - 0 years(Market Entry)t - 5 yearsProductLinesProduct Development Business Plan Seed Business CorvallisHPL, Sandia, PNNL, OSU, MITFundamental Science Foundational IP Technology Dev. Commercialization Core IP External (to HP)Technology8 5 April 2007Innovate at the Intersections• Organic Invention− Brainstorm sessions− Creative Culture− Innovation Conferences− Technical Conferences• Inorganic− Structured Processes• Invention Machine• External Ideas− Post Round B Corvallis is one of America’s “most inventive places”0200400600800100012001400Rochester NYBoise IDRochester MNCorvallis ORAustin TXPatents/100K people '90-'999 5 April 2007Example: Tech Brainstorm2002Number of ideas.Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecA51Customer needs Technology vectors IMCTorrey Pines Seminar June Poster Session Brainstorming, 1day/month, 80 eng. Problem analysisFunctions analysisInventive Functions deploymentDown selecting Tech Optimizer use Goldfire IP engine use Goldfire2003Milestone, Invent Checkpoint1011001000Down selecting PTX activityTechoptimizer10 5 April 2007Technology Development Process (TDP)MRNBCVentureBizWk0NBCStartupTDPCommercializeLPTDPCharacterizeILTDPDemonstrateDOTDPInventNBCBusinessConceptIdeaPhaseTDPConceptNBCIdeaInvestigationDeliverable = Rough Idea Resume Gate Key = Idea Entry ScreenFully populated Idea ResumeIdea Exit Screen-Use TDP checkpoint deliverables to move through funnelGate Key = Phase Exit Screen TDP = Technology Development Process (a stage gate process for technology development)11 5 April 2007Project EvaluationCompetitive StrengthTechnological SuperiorityFinancial StrengthMarket Need, Growth & SizeOverall Company Fit/Strategic AlignmentIP and Value CaptureMarket Familiarity to HPTechnological Familiarity to HPCompetitive StrengthTechnological SuperiorityFinancial StrengthMarket Need, Growth & SizeOverall Company Fit/Strategic AlignmentIP and Value CaptureMarket Familiarity to HPTechnological Familiarity to HPConcept Example:Diverse panel scores technology and highlights issues. The bar gets higher as project proceeds through the TDP.Project Strengths and WeaknessesTechnological SuperiorityMarket Need, Growth & SizeOverall Company Fit/StrategicAlignmentFinancial StrengthIP and Value CaptureTechnological Familiarity to HPMarket Familiarity to HPCompetitive StrengthInvestment $ and Time toRevenueCompetitive SituationStrong Negative Marginally NegativeMarginally Positive Strong Positive12 5 April 2007Portfolio Review• Used to evaluate and compare all TDO projects• Reviewed Biannually• Data captured during individual reviews feeds “bubble”placement• Portfolio viewed in 10 slices – Four standard and six uniqueIs there balance?13 5 April 2007Example PortfolioInvestment based on Market & Technology0.000.250.500.751.000.000.250.500.751.00Market Familiarity(Customer Familiarity + Competitive Familiarity +Go-to-market resources)/3 Technology Familiarity(Equip. Availability + Tech Skill Base + Tech Knowledge +Program Simplicity +People availability + (1-Innovativeness))/6High riskMedium riskLow riskUnfamiliarUnfamiliarFamiliar= Score Range= '04 Investment14 5 April 2007Example PortfolioCurrent Investment vs Commercialization Date0.000.250.500.751.002004 2005 2006 2007 2008 2009 2010 2011 2012Commercialization Date (Wk0)Reward(Key Competitive attribute + Competitive intensity + Platform for growth + Technical Durability + Total Investment $ + Time to Commercial Start-up + Annual incremental profit potential + Annual incremental revenue potential + Customer need + Market Size + Market Growth)/10= Score Range= '04 Investment15 5 April 2007Example PortfolioMaturity & Competitive Strength0.000.200.400.600.801.000.00 0.25 0.50 0.75 1.00Technology Life Cycle1-(Platform for Growth + Technical Durability)/2Technological Competitive Strength(Key competitive attribute + Tech durability + Platform for Growth + IP Control + Value capture)/5UndesirableMarket Concentration StrategyProfit